Mail Merge w/XML/XSL

I want to do a simple mail merge type thing where
values from an XML file are inserted into a template.
This brings up a bigger question too which is are
there instances where transformations involve more
than one file, without doing includes? Would seem to
be a useful model. Of course, I suppose w/XSLT you
could just do a two step process. Needless to say,
what I have in mind here would be a file with the data
in it (XML), a template file with the fields tokenized
somehow (i.e. Dear <mm:field name="firstName">, ...),
and then an XSL file for separate output types (text,
HTML, XML, WML, etc.).

Please advise,

Rob Williams

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